Here are eight facts:
1. Those companies’ employees have the option to shop on that private health exchange for a variety of coverage options with different price points and benefits as opposed to the typical one or two choices that many larger employers offer.
2. ADP is partnering with USI Insurance Services, a leading brokerage and consulting firm, to implement the exchange. Those companies referring their employees to that exchange can continue subsidizing the cost of their employees’ health coverage.
3. Additionally, ADP partnered with GoHealth Insurance, an online insurance broker, to give companies the option of directing qualified employees to a marketplace where they can purchase non-group, individual health plans. Additionally, GoHealth can enroll employees with low or moderate incomes in subsidized plans offered on government-run ACA marketplaces.
4. The ACA requires larger employers to offer affordable health coverage to those employees working 30 hours or more per week or will receive a fine. The ACA additionally imposed reporting requirements on companies pertaining to the health coverage status of their employees.
5. The “Cadillac Tax” will go into effect in 2018 and will require a 40 percent, non-deductible excise tax on high-cost employer-provided health plans. The threshold for the tax will be $10,200 for individual coverage and $27,500 for family coverage in the first year.
6. Many companies are seeking models for providing health benefits to employees and devising ways to reduce the cost of their health plans in an effort to avoid the Cadillac excise tax.
7. The ADP private health insurance option aims to make employees more value conscious and prone to selecting leaner plans. Additionally, ADOP aims to make it easier for companies to control their health plan costs and keep them under the Cadillac Tax threshold.
8. McKinsey, a consulting group, projects private exchanges will handle up to 20 percent of the employer-based health insurance market by 2019.
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